1) your spending power. How much risk are you

1)      Customer’s Risk Tolerance / Investment Profile (Please tick ? where
applicable)

 

Section
1 – Investor Profile Questionnaire

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Please select only ONE of the
available options of each question by placing a tick in the box that you think
best describes yourself. Kindly complete the questionnaire fully by completing
all questions.

 

 

Score

1. Which of the following do you think best describes your
investment objectives?

A. Your primary focus is on capital
growth. You are prepared to accept a high level of short term volatility and
possible capital losses in order to generate potentially higher levels of
capital growth over the long term. You are well placed to recover from
unforeseen market downturns either because you have time on your side or
access to capital reserves.

?

1 pt

B. You require your investments to
be a balance between capital growth and income generating assets. Calculated
risks will be acceptable as you are prepared to accept short term levels of
volatility in order to outperform inflation.

?

3 pts

C. Generating a regular income
stream is a priority over capital growth. You are prepared to sacrifice
higher returns in favor of preservation of capital.

?

5 pts

2. What percentage of your risk capital will be put at risk using
our services as your broker? (NB: Risk capital means funds and assets which
if lost would not materially change your lifestyle or your family’s
lifestyle)

A. Greater than 70%

?

1 pt

B. 35% to 70%

?

3 pts

C. Less than 35%

?

5 pts

3. Once investments have been placed, how long would it be before
you would need to access your capital?

A. Longer than 2 years

?

1 pt

B. Between 6 months and 2 years

?

3 pts

C. Less than 6 months

?

5 pts

4. Inflation can reduce your spending power. How much risk are
you prepared to take to counteract the effects of inflation?

A. I am comfortable with short to
medium term losses in order to beat inflation over the longer term

?

1 pt

B. I am conscious of the effects of
inflation, and am prepared to take moderate risks in order to stay ahead of
inflation

?

5 pts

C. Inflation may erode my savings
over the long term, but am only willing to take limited risk to attempt to
counter the effects of inflation

?

10 pts

5. How much money have you set aside (outside of your pension) to
handle emergencies?

A. More than six months of living
expenses

?

1 pt

B. Between one and six months of
living expenses

?

3 pts

C. Less than one month of living
expenses

?

5 pts

6. You possess $100,000 and wish to invest the funds for the
future. Which of the asset mixes would you choose to invest in?
 => Investment A has a
potential return of 30% but the possibility of losing up to 40% in any year.
 => Investment B has an
average return of 3% with the possibility of losing up to 5% in any year.

A. 80% in Investment A and 20% in
Investment B

?

1 pt

B. 50% in Investment A and 50% in
Investment B

?

3 pts

C. 20% in Investment A and 80% in
Investment B

?

5 pts

7. Over the longer term, what return do you reasonably expect to
achieve from your investment portfolio?

A. More than 9% per annum above the
prevailing fixed deposit rate

?

1 pt

B. Prevailing fixed deposit rate
plus 3-9% per annum

?

3 pts

C. Less than 3% per annum above the
prevailing fixed deposit rate

?

5 pts

8. Most investments can fluctuate both up and down (i.e.
volatility). How much could your investment fall in value over a 12 month
period before you begin to feel concerned and anxious?

A. More than 25%

?

1 pt

B. Up to 25%

?

3 pts

C. Up to 5%

?

5 pts

9. What would your reaction be if six months after placing your
investment you discover that your portfolio had decreased in value by 20%?

A. I would invest more funds to
lower my average investment price, expecting future growth

?

1 pt

B. This was a calculated risk and I
would leave the investment in place, expecting future growth

?

3 pts

C. I would cut my losses

?

5 pts

10. To what extent are you concerned about preservation of your
capital?

A. A high degree of risk would be
acceptable given longer term capital growth objectives

?

1 pt

B. A moderate degree of risk would
be acceptable given the potential for increased returns

?

5 pts

C. A minimal degree of risk would be
acceptable for a slight increase in potential returns

?

10 pts

11. What are your current income requirements from your
investments?

A. I require a small amount of
investment income as I am mainly focused on capital growth

?

1 pt

B. I require an equal combination of
investment income and capital growth

?

3 pts

C. I require substantial investment
income with only some capital growth

?

5 pts

Total Points (Questions 1- 11): Please add the scores indicated
next to your selected options for every question and indicate your total
score in the box:

 

 

 

Section
2:  Your Investment Profile / Risk
Tolerance

 

Based on the score from the questions
you have answered in the previous section of this questionnaire, you have been
determined to be the following type of investor:

Score

Description

30 points or less

Aggressive
An Aggressive Investor is prepared
to accept higher risks in order to obtain greater investment returns with a
potential to lose all or more of his capital. 
An Aggressive Investor is comfortable with investments that are more
volatile and bear a higher risk of loss of capital. An Aggressive Investor
has a high appetite for speculative trading.

31 to 47 points

Balanced
A Balanced Investor seeks a mixture
of capital growth and regular income from his investments. A Balanced
Investor is therefore prepared to accept moderate amounts of risk to earn
moderate potential returns. A Balanced Investor accepts that there is a real
potential to lose at least part of his capital in seeking moderate returns. A
Balanced Investor appreciates that there will be, even in times of stability,
occasional periods of volatility and risk of loss of capital. A Balanced
Investor may engage in speculative trading from time to time and particularly
accepts that when times are uncertain, trading is more likely to be regarded
as more inherently speculative.

48  points or more

Conservative
A Conservative Investor seeks
primarily capital preservation. A Conservative Investor seeks principally a
safe and regular income as a priority over capital growth. A Conservative
Investor should seriously consider whether he should be putting his money in
investments other than in fixed deposit.

 

 

2)      Other Relevant Information (Please tick ? where
applicable)

 

 

? No other information is relevant in
determining the suitability of any specific advice or recommendation to be made
to me.

 

? In addition to the answers above, you
will have to take note of the following information in determining the
suitability of any specific advice or recommendation to be made to me:

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_____________________________                                   _____________________________

Name
of Customer and Date (dd/mm/yyyy)                                     Signature
of Customer